(RTTNews) -  Thursday, transportation and supply chain management services provider Con-way Inc. (CNW: News ) reported that its second quarter profit decreased from last year, due to a 21.2% decrease in revenues. The results was affected by the challenges of the recessionary economy and a weak freight market.

The San Mateo, California-based company's second quarter net income applicable to common shareholders was $31.47 million or $0.64 per share, compared to $48.70 million or $1.02 per share in the year-ago quarter. The prior year quarter net income included a net gain from disposal of $1.61 million or $0.04 per share.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenue for the quarter dropped 21.2% to $1.06 billion from $1.34 billion in the corresponding period last year, below Street estimates of $1.11 billion.

Business segment wise, freight revenues decreased 22.6% to $637.95 million from $824.01 million in the year-ago period. Tonnage per day handled by Con-way Freight decreased 7.0%, reflecting continued weak demand. Yield for Con-way Freight down 17.4%, and yield excluding the fuel surcharge decreased 6.7%. Competitive pricing conditions driven by excess market capacity continued to dampen yield comparisons.

Logistics revenue was down 13.3% to $326.96 million from $377.14 million in the prior-year year period. Net revenue of $126.7 million was essentially flat from last year, benefiting from new contract wins which helped offset recession-induced declines in transactional volumes and pricing pressures from existing accounts.
Con-way Truckload's revenue declined 34.6% to $89.77 million from $137.36 million last year, reflecting the elimination of inter-company revenues of $53.5 million in 2009 and $44.2 million in 2008. The truckload market continued to experience soft demand exacerbated by excess capacity.

Con-way Other including the company's Road Systems, Inc. trailer manufacturing unit as well as other corporate activities reported $1.66 million revenue during the second quarter, up from $1.18 million in the previous year period.

Commenting on the quarter, Con-way chief executive officer Douglas Stotlar said, "Despite the challenges of the recessionary economy and a weak freight market, we returned the company to profitability. These results are a testament to the solid execution by Con-way's employees at all of our business units, and the benefit of cost-reduction measures implemented in April."

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